Terms of Trade Question

[steviemay2000]

Another question if someone is able to help: I am really confused about the relation between terms of trade and the exchange rate... The textbook says that a rising terms of trade will lead to a rise in demand of AUD and hence an appreciation.
However, doesn't a rising terms of trade mean that exports are becoming more expensive relative to imports... wouldn't this cause a fall in demand for AUD and hence a depreciation instead?

[JTrudeau]

Hey! So, a rising terms of trade speaks more about the demand for Australian goods and services. Our exports are more demanded, which is why the prices go up. And as a part of that demand, the AUD appreciates.

Think if Japanese tuna became really popular in Australia— the price would go up (and improve Japan’s terms of trade), but we’d keep buying because that’s what we demand.